IMF, World Bank, WFP warn Iran war may drive up global food prices

The International Monetary Fund (IMF), World Bank and World Food Programme (WFP) have warned that the ongoing conflict in the Middle East is triggering major disruptions to global energy markets, which could drive up food prices and deepen food insecurity worldwide.

In a joint statement issued after a high-level meeting, the heads of the three institutions said the crisis has already led to one of the most significant energy shocks in recent history. They noted that rising oil, gas and fertiliser prices, coupled with transport bottlenecks, are likely to push food costs higher across global markets.

“The Middle East war is upending lives and livelihoods in the region and beyond,” the statement said, adding that the impact would extend far beyond the conflict zone.

The organisations cautioned that the burden of rising food prices would fall disproportionately on vulnerable populations, particularly in low-income, import-dependent countries. With limited fiscal capacity and high debt levels, many governments may struggle to shield households from the combined effects of higher fuel and food costs.

They said they would continue to closely monitor developments and coordinate efforts using available financial and humanitarian tools to support affected countries, protect livelihoods and promote a stable recovery.

The warning comes shortly after the United States and Iran agreed to a two-week ceasefire following weeks of hostilities that began on 28 February, raising cautious hopes of de-escalation even as global economic risks persist.

With PTI inputs